Hong Kong sees challenges for the retail sector as August sales fall 10%
Adds detail, government comment
HONG KONG, Oct 3 (Reuters) -Hong Kong's August retail sales fell 10.1% from a year earlier, government data showed, reflecting a relatively strong Hong Kong dollar, the changing consumption patterns of residents and their increased travel abroad during holidays.
Sales fell to HK$29.2 billion ($3.8 billion) in a sixth consecutive month of decline after a revised 11.7% fall in July, 9.7% fall in June, a 11.5% drop in May, a 14.7% drop in April and a 7% decline in March.
"The retail sector will still face challenges in the near term," a government spokesperson said, adding an easing Hong Kong dollar exchange rate alongside U.S. interest rate cuts would provide support to the sector.
In volume terms, retail sales fell 11.8% year-on-year in August, compared with a revised 13.2% decline in July, 11.2% drop in June, a 12.9% drop in May, a 16.5% plunge in April and a 8.7% decline in March.
For the first eight months of 2024, retail sales value fell 7.7% year-on-year and volume was down 9.3%.
August visitor arrivals stood at 4.45 million, up 9.2% on the year-earlier period, data from the Hong Kong Tourism Board showed. That compared with 3.92 million visitors in July.
The number of mainland Chinese visitors stood at 3.66 million in August, up 6.6% year-on-year.
Sales of jewellery, watches, clocks and valuable gifts in August declined 24% year-on-year after a 25.1% drop in July.
Sales of clothing, footwear and accessories fell 12.3% in August following a 16.8% drop in July.
($1 = 7.7681 Hong Kong dollars)
Reporting by Donny Kwok; Editing by Christina Fincher and Emelia Sithole-Matarise
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